Cable Compulsory License Non-Discrimination Act of 1988 - Amends Federal copyright laws to subject certain secondary transmissions by cable systems to compulsory licensing if: (1) such transmissions take place entirely within the local service area of the primary transmitter and the cable system complies with specified requirements of the Communications Act of 1934; or (2) such transmission takes place wholly or partially beyond the local service area of the primary transmitter. Requires in both instances that carriage of the signals be permissible under Federal Communications Commission rules.

Amends the Communications Act of 1934 to define the must-carry requirements with which cable service providers must comply. Redefines "local service area of a primary transmitter."